Key Energy Services, Inc. (NYSE:KEG)

Bounce play

Third Q 2012 international revenues were $93.0 M up10% compared to prior Q.rev. of $ 84.4 million operating income was $19.4 M or 20.8% of rev. second Q. 2012 operating income was $ 16.1M or 19.1% of rev. improvement in 3 rd Q due to higher activity in Mexico .Largest on shore rig based well services conducting conductor

http://bit.ly/g2a48T

Better acceptance of fracturing the reservoir.

Drilling companies are oversold and demadn is high for on-shore drilling.

sell the shovels

Red Raider is Lord

I LOVE KEG,,BUT A PULLBACK IS COMING...UNLESS OIL GOES TO $80 WHICH WONT HAPPEN UNLESS IRAN SENARIO HEATS UP MORE.....EVEN THAT WOULD BE SHORT LIVED SINCE THERE REALLY IS NO ECONOMICAL SUPPORT FOR THAT LEVEL...I AM CERTAINLY A BUYER AT $ 6

Energy will be on the move by 2nd quarter of 2010.

screener
CAPS Rating
4 - 5 on 2009-09-02
4 - 5 on 2008-12-31

% Below 12 Month High >= 50
4 Week Price Change %5 - 75
Price-to-Earnings (TTM) <= 15
Price-to-Sales (TTM) <= 10
Price-to-Book (TTM) <= 10
Current Ratio >= 1
Gross Margin >= 20

Natural Gas is Cleaner Burning than coal. CLNG vehicles are becoming more prevalent.

longer term

Gas and oil prices will trend higher. Good time to buy and hold.

Once the dust settles in the next 3 - 4 months, the economy will rev up and energy will end up being the backbone of the industry as we explore new ways to supply energy more efficiently and cost effectively.

New Administration is opening the flood gates for domestic gas and oil production

I can't believe this is so cheap. And with a falling $ oil will go up, and the recent supply cuts will be felt in the market

Dirt Cheap
P/E 3.4
Price to book 0.6
EV/Ebitda 2.6
DCF value 16 (vs. current price of 4.6)

Safe
Debt to equity 0.7
Interest cover 5.5

Profitable
RoE 17.5%

Industry outlook excellent
We need more oil wells - oil well productivity declining
You need me type of service

Competitive advantage
Good

I keep buying into this and then selling, it keeps surprising me. Has a PE less than 16. Even though its had a lot of growth, its debt to capital ratio is great.

Key Energy started by buying smaller companies to get their sheer size up and going. Now that they are being recognized as a big player in the service company world, their demand is growing with it. I don't see anywhere but up for them, with minor dips when they take over another smaller company. Experienced operators are in high demand, and Key is making the necessary moves to position themselves at the right time.